CAMPBELL, CA—Vista Investment Group's most recent acquisition offers the Santa Monica, CA-based real estate investment firm the opportunity to create value in one of the most supply-constrained submarkets in Silicon Valley. This will be accomplished by continuing to reposition older buildings in the project to a more creative office standard and leveraging off of an expansive campus setting, which is one of the largest contiguous land sites in the area, according to Vista's president Jonathan Barach.
In the mega-investment transaction, Vista Investment Group in joint venture with an institutional money management firm, acquired the 314,256-square-foot Vasona Technology Park for $113 million. The technology park features seven freestanding one- and two-story office and R&D buildings ranging in size from 16,000 to 74,000 square feet. Developed in 1963 and 1981, Vasona Technology Park is located on an 18.5-acre site at 210 East Hacienda Ave., bordered by Winchester Boulevard, East Hacienda Avenue and Dell Avenue.
“This is our fourth, and probably most exciting project in the Silicon Valley,” said Barach. “The property is anchored by investment-grade tenants with long-term leases, and will benefit from both interior and exterior improvements, which we will implement as leases expire over the next several years. We will work immediately to improve the outdoor common areas with the creation of large collaborative work, dining and recreation spaces throughout the campus. The campus is proximate to highly desirable executive housing in the neighborhoods of Los Gatos, Saratoga and Monte Sereno.”
Vasona Technology Park was 100% leased at closing. Tenants include the Kaiser Foundation Health Plan and ChargePoint.
“What we found particularly attractive about this deal were the two major tenants in the project. With Kaiser, you have a very stable investment-grade company that's been a tenant at the property for a long time,” Barach tells GlobeSt.com. “And with ChargePoint, you have a rapidly growing clean tech company that embodies the Silicon Valley success story.”
The acquisition of Vasona Technology Park brings Vista Investment Group's Silicon Valley office portfolio to more than 673,000 square feet. Its other assets located in nearby San Jose are 100% leased to a variety of semiconductor, optics, life sciences and wireless companies including Broadcom, Thinfilm, BioNex, Oclaro and O-Net Communications.
Vista's acquisition of the Vasona Technology Park was one of the largest real estate investment transactions in Silicon Valley R&D in the past 12 months.
“The Silicon Valley market experienced a strong second half of 2017 after a relatively slow start to the year,” said Eric Fox of Cushman & Wakefield's Northern California capital markets team, who marketed the property on behalf of the seller. “Investor optimism and tenant growth have returned to the marketplace.”
Vista is a privately held real estate investment firm engaged in the acquisition and active management of commercial real estate in the western United States. The company focuses on value-add and opportunistic strategies in the multifamily, mixed-use and office sectors. Vista's portfolio, primarily located in urban infill markets within California and the Pacific Northwest, includes approximately 1,200 multifamily units and 1 million square feet of office space.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
